Gen Y & Z: Understanding our Consumers of Tomorrow Keynote by Katrina McCarter Summary notes prepared by Julius Maloney
Summary GENERATION Y Gen Y are aged 26 to 41 years 1. Mobile-First Marketing • Gen Ys need a mobile-first marketing strategy. Why? Because these are our first generation of adults who are used to today’s mobile-first method of navigating the world. • Although many Gen Ys own a desktop, they spend almost 7 times the amount of time on a smartphone than on a desktop. On the smartphone they are using apps including Facebook, Instagram, YouTube, Pinterest and TikTok. • They are twice as likely to watch a video ad on their smartphone as they are on television. This is great news for you as a small business owner, as Gen Y are almost twice as likely to act on the ad because research tells us that people watching ads on their smartphones tend to be more active. • Firstly, you need a well-designed website built for mobile. Invest in your website development and maintenance. Always test your website updates and development on your phone and not just your desktop. • If you want to reach Gen Y you need to hang out on their platforms, and this includes socials. You need to be regularly posting on social media to engage with them. 2. Content Over Marketing • The second insight into understanding Gen Ys is that they favour content over traditional marketing messages. Outbound marketing methods, commonly referred to as ‘push’ marketing strategies, including magazine ads, direct mail campaigns and radio ads, just won’t engage this audience. In fact, they repel Gen Y consumers. They find them impersonal. In fact, research shows us that 63% of Gen Y will use an ad blocker on apps. • Instead, they seek ‘attraction’ marketing strategies. They want to read your information via blogs, forums, podcasts, and YouTube videos, and feel empowered to make a purchase from you. • Amplify your blog on your website. Think about what articles, short videos and tips could you create which would be valuable to this consumer and go about creating them. They will find your thought leadership and expertise in optometry helpful. • Then amplify this content to where Gen Y like to hang out – Instagram, YouTube, Facebook. 3. Values Over Value • Gen Y don’t purchase on price alone. In fact, they will frequently purchase based on your values and what causes you support. Research has shown that 91% of Gen Ys will be loyal to a brand that supports a cause. This is significantly higher than the general population.
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Kathmandu does a great job on appealing to Gen Y through their cause marketing efforts. Earlier this year they teamed up with Beyond Blue to raise money for mental health by setting up a pop-up zip line in Sydney Harbor. Ticket prices were donated to Beyond Blue, and they set up a pop-up shop at the location also. It really appeals to Gen Y’s desire to have fun experiences. Gen Y believe that small actions can have a big impact. They support brands and businesses that are willing to take a stand. It will be important for your business to embrace who you are and what you stand for. Now is the time to work out what you stand for and start looking at cause marketing activities you could become involved in.
4. Seek out Fun Experiences • Gen Y actively seek out fun experiences. This includes seeking out fun shopping experiences. Online shopping has become a form of entertainment for many Gen Y consumers. They find the researching and browsing for a purchase just as much fun as the purchase itself. • Research shows us that 40% of Gen Ys make wish-lists of products they want to buy which are stored by brands. It’s why we are seeing platforms like Pinterest becoming increasingly important. 5. Take Parenting Very Seriously • The surprising thing about Gen Y is that they take parenting very seriously – in fact, more seriously than any other generation we’ve seen. They want to be the very best parent they can be. • Katrina’s ‘Marketing to Mums’ collaborated with Australia’s biggest online parenting platform, ‘Mum Central’, to undertake the biggest research study into Australian parents. Whilst the survey is still not complete, there’s one particular statistic Katrina would like to share with you: • After having 1000 parents participate, we’ve uncovered that only 32% of Gen Y parents have taken their child to the optometrist before starting prep or school. So you can educate your Gen Y parents about the benefits and need to bring in their children before they start school. Recap: The 5 critical things to know about Gen Y 1. 2. 3. 4. 5.
Mobile-first marketing Content over marketing Value over values Seek out fun experiences Take parenting very seriously
GENERATION Z Gen Z are aged between 10-25 years. 1. Hyperconnected • Gen Z is Hyperconnected. • This is our first generation of digital natives; they’ve never known a world without technology. Their digital aptitude is extraordinary and being hyperconnected is their norm. • The iPhone launched in 2007 when the oldest Gen Z-ers were only 10.
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This generation spends more time on their phone engaging in digital media than they do in face-to-face interactions. Being digital natives and spending so much time online, Gen Z demand speed. They expect a seamless experience across digital devices with minimal clicks. It must be fast, easy to use and frictionless, with quick delivery of the product or service. Gen Z can filter content at a speed we’ve never seen before. They no longer read but scan and pick up key words. Gen Z have incredibly short attention spans. It’s really milliseconds to get their attention. They have grown up on Instagram stories and engaging on TikTok. They favour short-form video content rather than text. Being hyperconnected has enormous implications for business owners. Katrina recommends reviewing your digital assets starting with your website, social media and creating more video content. It’s essential that you have a seamless experience via your digital platforms. We must recognise that Gen Z are highly distracted. They seek out snackable, short form content from brands they follow. Businesses will need to focus on being direct, quick, and simple in their approach when communicating with Gen Z.
2. Media Shifts • Gen Z have very different media platforms from your current customers. This is NOT the TV generation of the Gen X and Baby Boomers. This generation are streamers. They love adfree platforms too like Spotify Premium. • A recent study has found that Gen Z spend 68% of their total media time on digital channels. • They also favour different social media platforms. They are not Facebook users. They favour TikTok and BeReal. • TikTok exploded in Australia during lockdown and has more than 4.1m users across the country. This platform has been embraced by Gen Z who love the video content and oddball humour. • Anecdotally they love TikTok because of how personalised & curated content is. They feel it’s been made for them specifically. • A newer platform which has exploded this year is BeReal. This is a social media video app which is much like a ‘photo a day’ video app. It sends out a global notification to users which gives them two minutes to take two photos of what they are currently doing. Authentic and in real time without filters. It has really taken off with Gen Z here in Australia since about March. There are now more than 1.4m users in Australia and this is growing quickly. • Gen Z anecdotally love the spontaneity of BeReal and that it can notify them at any time of the day or night. • They love gaining an insight into their friend’s real lives away from more aspirational, static platforms like Instagram. • You need to start learning and educating yourself. Reaching out to these consumers on platforms you might not yet be familiar with. • They want images which capture ‘as you are’. Consider using real customers and refrain from retouching your images. 3. Risk Adverse • An interesting fact about Gen Z is that they are risk adverse.
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Gen Z do not have the same appetite for risk as Millennials. They are less experimental and are not drinking, smoking, or engaging in other risky pursuits as early as past generations. This aversion to risk is seen in their purchasing behaviours also. Having grown up in the digital age they are very aware that whatever they post will last forever on the internet so are not about to compromise their future over posting inappropriate content. They are very considered about which businesses they will give their email address to. Additionally, their social media accounts are more likely to be private rather than open to viewing by the public. They are more considered. Third-party proof and endorsements by other Gen Z consumers will be important in swaying their purchase decisions. Earned media, media logos and awards will become more valuable as they seek ways to minimise their risk of purchase.
4. Want to collaborate with brands • While Gen X consumers want you to help them save time and give them greater convenience, Gen Z are seeking to co-collaborate with brands. • They are used to having a voice on social media. Many are content creators. They expect to be seen and heard. • In one study, it was uncovered that 82% of Gen Z would trust a brand more if they featured real customers in their ads. • They want to see you use their user-generated content and experiences to promote your business. • Now is the time to start working out how you can encourage you customers to photograph themselves wearing your glasses and tagging your business. 5. Purpose is everything • Gen Z is purpose-driven. • Your brand’s purpose will be a critical element to your success. Your purpose will need to go far deeper than just being a marketing strategy; it will need to permeate your organisation. • One study in Australia has identified that 3 out of 4 Gen Z consumers want to buy from businesses that align with their values. • Be careful of green-washing though. Gen Z can sniff out inauthentic attempts to appear purpose-driven in an instant, and the impact can be devastating to your bottom line. • Diversity and transparency are an expectation to this generation. They want brands and businesses to be real and authentic. • Now is the time to start thinking and talking about your business values and purpose and then work out how you might start communicating that in the future. • Review your imagery to ensure you share a diverse range of consumers. Recap: The 5 critical things to know about Gen Z: 1. Hyperconnected 2. Media Shifts 3. Risk Adverse 4. Co-collaborate 5. Purpose is everything